Tata Increases Nano Deliveries

Tata Motors has announced that the Nano has begun deliveries in in the Indian states of Gujarat, Andhra Pradesh, Jharkhand, Bihar, Madhya Pradesh and Chhattisgarh.

The move comes in the middle of reports that limited distribution, high prices and negative publicity over some models catching fire more or less out of the blue, have diminished consumer confidence in the brand and hold sales back. The car was also delayed during production because of a a land dispute between Tata Motors and the West Bengal government.

Customers will be able to take a closer look at, and test drive, the Tata Nano across all Tata Motors dealerships and special Nano access points. The move would help Tata Motors double its sales and dispatches to 20,000 Nanos a month from 9,000 in the present.

Tata Motors also says it has made arrangements with 26 banks for customers to be offered loans for purchasing at attractive rates of interest. It adds that "more arrangements of this kind will be forthcoming".

The company's new manufacturing plant at Sanand (Gujarat) is fully operational and has a capacity of 250,000 cars per year. Production at the plant is being hastily increased, for instant delivery, Tata says.

Tata Nano deliveries have already begun in Kerala since August 2010 and in Karnataka, Maharashtra, Uttar Pradesh and West Bengal since October 2010. Pricing for the Nano Base Model starts at 135,151 Indian Rupees (US $2,978) and goes up to 186,498 rupees (US $4,109) for the LX model.

Despite 15 per cent increase in raw material prices, the company has increased prices of Nano by merely 3-5 per cent, a clear indication that Tata Motors is willing to take a knock on its margins to push more Nanos on the road. The initial response to off-the-shelf sales in the showrooms has been encouraging and Tata Motors hopes the same is reflected in the kiosks across the country.
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